Bawumia proposes fiscal rule amendment to curb govt spending

Dr. Mahamudu Bawumia, the New Patriotic Party's (NPP) presidential candidate, has proposed amending Ghana's fiscal rule to curb government spending.

The current rule, limiting the budget deficit to 5% of GDP, was suspended due to the COVID-19 pandemic. Bawumia suggests a new rule where government expenditure cannot exceed 105% of the previous year's revenue, promoting fiscal discipline.

During a meeting with the Trades Union Congress in Accra, he emphasised this approach to prevent overly optimistic revenue forecasts from leading to higher deficits.

Bawumia also pledged to establish an independent fiscal governance council to oversee the Ministry of Finance's actions.